Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending CHX Article 20, Rule 2, Which Provides for, Among Other Things, Trading Pauses in Individual Securities Due to Extraordinary Market Volatility, Extending the Effective Date of the Pilot Until the Earlier of the Initial Date of Operations of the Regulation NMS Plan To Address Extraordinary Market Volatility or February 4, 2014, 9981-9983 [2013-03187]
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Federal Register / Vol. 78, No. 29 / Tuesday, February 12, 2013 / Notices
the fees paid by market participants,
FINRA does not believe that the change
will affect the competitive standing of
the FINRA/Nasdaq TRF or members that
use the facility to report trades to
FINRA.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 10 and paragraph (f)(2) of Rule
19b–4 thereunder.11 At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–FINRA–2013–009 on the
subject line.
tkelley on DSK3SPTVN1PROD with NOTICES
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–FINRA–2013–009. This file
number should be included on the
subject line if email is used.
To help the Commission process and
review your comments more efficiently,
please use only one method. The
Commission will post all comments on
the Commission’s Internet Web site
(https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room on official business
days between the hours of 10:00 a.m.
and 3:00 p.m. Copies of such filing also
will be available for inspection and
copying at the principal offices of
FINRA. All comments received will be
posted without change; the Commission
does not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–FINRA–2013–009, and
should be submitted on or before March
5, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–03104 Filed 2–11–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68853; File No. SR–CHX–
2013–03]
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Amending
CHX Article 20, Rule 2, Which Provides
for, Among Other Things, Trading
Pauses in Individual Securities Due to
Extraordinary Market Volatility,
Extending the Effective Date of the
Pilot Until the Earlier of the Initial Date
of Operations of the Regulation NMS
Plan To Address Extraordinary Market
Volatility or February 4, 2014
February 6, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on January
28, 2013, the Chicago Stock Exchange,
Inc. (‘‘CHX’’ or ‘‘Exchange’’) filed with
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
10 15
U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(2).
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9981
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CHX proposes to amend CHX Article
20, Rule 2, which provides, among other
things, for trading pauses in individual
securities due to extraordinary market
volatility, to extend the effective date of
the pilot by which such rule operates
from the current schedule expiration
date of February 4, 2013, until the
earlier of the initial date of operations
of the Regulation NMS Plan to Address
Extraordinary Market Volatility or
February 4, 2014. The text of this
proposed rule change is available on the
Exchange’s Web site at (www.chx.com)
and in the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
CHX included statements concerning
the purpose of and basis for the
proposed rule changes and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
CHX has prepared summaries, set forth
in sections A, B and C below, of the
most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
CHX Article 20, Rule 2, which provides
for, among other things, trading pauses
in individual securities due to
extraordinary market volatility, to
extend the effective date of the pilot by
which such rule operates from the
current schedule expiration date of
February 4, 2013,3 until the earlier of
the initial date of operations of the
Regulation NMS Plan to Address
Extraordinary Market Volatility or
February 4, 2014.
3 See Securities Exchange Act Release No. 67573
(August 2, 2012), 77 FR 47479 (August 8, 2012)
(SR–CHX–2012–12).
E:\FR\FM\12FEN1.SGM
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9982
Federal Register / Vol. 78, No. 29 / Tuesday, February 12, 2013 / Notices
tkelley on DSK3SPTVN1PROD with NOTICES
CHX Article 20, Rule 2 requires the
Exchange to, among other things, pause
trading in an individual security listed
on the Exchange if the price moves by
a specified percentage as compared to
prices of that security in the preceding
five-minute period during a trading day,
which period is defined as a ‘‘Trading
Pause.’’ The pilot was developed and
implemented as a market-wide initiative
by the Exchange and other national
securities exchanges in consultation
with the Commission staff and is
currently applicable to all NMS stocks
and specified exchange-traded
products.4
The extension proposed herein would
allow the pilot to continue to operate
without interruption until
implementation of the Regulation NMS
Plan to Address Extraordinary Market
Volatility.5 The Exchange anticipates
that the Regulation NMS Plan to
Address Extraordinary Market Volatility
will not begin initial operations on
February 4, 2013 as currently planned,
4 The Exchange notes that the other national
securities exchanges and the Financial Industry
Regulatory Authority have adopted the pilot in
substantially similar form. See Securities Exchange
Act Release No. 62252 (June 10, 2010), 75 FR 34186
(June 16, 2010) (File Nos. SR–BATS–2010–014; SR–
EDGA–2010–01; SR–EDGX–2010–01; SR–BX–2010–
037; SR–ISE–2010–48; SR–NYSE–2010–39; SR–
NYSEAmex–2010–46; SR–NYSEArca–2010–41; SR–
NASDAQ–2010–061; SRCHX–2010–10; SR–NSX–
2010–05; and SR–CBOE–2010–047) and Securities
Exchange Act Release No. 62251 (June 10, 2010), 75
FR 34183 (June 16, 2010) (SR–FINRA–2010–025).
See also Securities Exchange Act Release No. 62884
(September 10, 2010), 75 FR 56618 (September 16,
2010) (File Nos. SR–BATS–2010–018; SR–BX–
2010–044; SR–CBOE–2010–065; SR–CHX–2010–14;
SR–EDGA–2010–05; SR–EDGX–2010–05; SR–ISE–
2010–66; SR–NASDAQ–2010–079; SR–NYSE–
2010–49; SR–NYSEAmex–2010–63; SR–NYSEArca–
2010–61; and SR–NSX–2010–08 and Securities
Exchange Act Release No. 62883 (September 10,
2010), 75 FR 56608 (September 16, 2010) (SR–
FINRA–2010–033). See also Securities Exchange
Act Release No. 63500 (December 9, 2010), 75 FR
78309 (December 15, 2010) (SR–NYSE–2010–81). A
proposal to, among other things, expand the pilot
to include all NMS stocks not already included
therein was implemented on August 8, 2011. See
also Securities Exchange Act Release No. 64735
(June 23, 2011), 76 FR 38243 (June 29, 2011) (File
Nos. SR–BATS–2011–016; SR–BYX–2011–011; SR–
BX–2011–025; SR–CBOE–2011–049; SR–CHX–
2011–09; SR–EDGA–2011–15; SR–EDGX–2011–14;
SR–FINRA–2011–023; SR–ISE–2011–028; SR–
NASDAQ–2011–067; SR–NYSE–2011–21; SR–
NYSEAmex–2011–32; SR–NYSEArca–2011–26; SR–
NSX–2011–06; and SR–Phlx–2011–64).
5 See Securities Exchange Act Release No. 67091
(May 31, 2012), 77 FR 33498 (June 6, 2012) (File
No. 4–631) (Order Approving, on a Pilot Basis, the
National Market System Plan To Address
Extraordinary Market Volatility by BATS Exchange,
Inc., BATS Y-Exchange, Inc., Chicago Board
Options Exchange, Incorporated, Chicago Stock
Exchange, Inc., EDGA Exchange, Inc., EDGX
Exchange, Inc., Financial Industry Regulatory
Authority, Inc., NASDAQ OMX BX, Inc., NASDAQ
OMX PHLX LLC, The Nasdaq Stock Market LLC,
National Stock Exchange, Inc., New York Stock
Exchange LLC, NYSE MKT LLC, and NYSE Arca,
Inc).
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but will begin operations on April 8,
2013.6 If the Regulation NMS Plan to
Address Extraordinary Market Volatility
has an initial date of operations of April
8, 2013 or any other date before
February 4, 2014, the proposed pilot for
trading pauses would expire at that
time.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,7 in general, and furthers the
objectives of Section 6(b)(5) of the Act,8
in particular, in that it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. The Exchange believes
that the change proposed herein meets
these requirements in that it promotes
uniformity across markets concerning
decisions to pause trading in a security
when there are significant price
movements, which promotes just and
equitable principles of trade and
removes impediments to, and perfect
the mechanism of, a free and open
market and a national market system.
Additionally, extension of the pilot
until the earlier of the initial date of
operations of the Regulation NMS Plan
to Address Extraordinary Market
Volatility or February 4, 2014 would
allow the pilot to continue to operate
without interruption while the
Exchange and the Commission further
assess the effect of the pilot on the
marketplace or whether other initiatives
should be adopted in lieu of the current
pilot, which contributes to the
protection of investors and the public
interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed changes being made to extend
the operation of the trading pause pilot
until the earlier of the initial date of
operations of the Regulation NMS Plan
to Address Extraordinary Market
Volatility or February 4, 2014 would
allow the pilot to continue to operate
without interruption until
6 See Letter from Janet McGinness, Senior Vice
President, Legal and Corporate Secretary, NYSE
Euronext, to Elizabeth M. Murphy, Secretary,
Commission, dated January 17, 2013.
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
PO 00000
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Fmt 4703
Sfmt 4703
implementation of the Regulation NMS
Plan to Address Extraordinary Market
Volatility, which contributes to the
protection of investors and the public
interest. Other competing equity
exchanges are subject to the same
trading pause requirements specified in
the Plan. Thus, the proposed changes
will not impose any burden on
competition while providing trading
pause requirements specified in the
Plan.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 9 and Rule
19b–4(f)(6) thereunder.10 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 11 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),12 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because such waiver would allow the
9 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6). In addition, Rule 19b4(f)(6) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
11 17 CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii).
10 17
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Federal Register / Vol. 78, No. 29 / Tuesday, February 12, 2013 / Notices
pilot program to continue
uninterrupted. Accordingly, the
Commission hereby grants the
Exchange’s request and designates the
proposal operative upon filing.13
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
publicly available. All submissions
should refer to File Number SR–CHX–
2013–03 and should be submitted on or
before March 5, 2013.
IV. Solicitation of Comments
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Kevin M. O’Neill,
Deputy Secretary.
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–CHX–2013–03 on the
subject line.
tkelley on DSK3SPTVN1PROD with NOTICES
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–CHX–2013–03. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
13 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
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[FR Doc. 2013–03187 Filed 2–11–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68852; File No. SR–NSX–
2013–05]
Self-Regulatory Organizations;
National Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Amend
Rule 11.20B To Extend the Pilot
Program Regarding Trading Pauses in
Individual Securities Due to
Extraordinary Market Volatility
February 6, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on January
28, 2013, National Stock Exchange, Inc.
(‘‘NSX®’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NSX Rule 11.20B, which provides for
trading pauses in individual securities
due to extraordinary market volatility,
to extend the effective date of the pilot
by which such rule operates from the
current scheduled expiration date of
February 4, 2013, until the earlier of the
initial date of operations of the
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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9983
Regulation NMS Plan to Address
Extraordinary Market Volatility or
February 4, 2014.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.nsx.com, at the principal
office of the Exchange, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
NSX Rule 11.20B, which provides for
trading pauses in individual securities
due to extraordinary market volatility,
to extend the effective date of the pilot
by which such rule operates from the
current scheduled expiration date of
February 4, 2013,3 until the earlier of
the initial date of operations of the
Regulation NMS Plan to Address
Extraordinary Market Volatility or
February 4, 2014. The pilot will
continue to operate as to individual
securities until such security is subject
to the Regulation NMS Plan to Address
Extraordinary Market Volatility.
NSX Rule 11.20B requires the
Exchange to pause trading in an
individual security listed on the
Exchange if the price moves by a
specified percentage as compared to
prices of that security in the preceding
five-minute period during a trading day.
The pilot was developed and
implemented as a market-wide initiative
by the Exchange and other national
securities exchanges in consultation
with the Commission staff and is
currently applicable to all NMS stocks
and specified exchange-traded
products.4
3 See Securities Exchange Act Release No. 67556
(August 1, 2012), 77 FR 47156 (August 7, 2012)
(SR–NYSE–2012–31).
4 The Exchange notes that the other national
securities exchanges and the Financial Industry
Continued
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]]>Agencies
[Federal Register Volume 78, Number 29 (Tuesday, February 12, 2013)]
[Notices]
[Pages 9981-9983]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-03187]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68853; File No. SR-CHX-2013-03]
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Amending CHX Article 20, Rule 2, Which Provides for, Among Other
Things, Trading Pauses in Individual Securities Due to Extraordinary
Market Volatility, Extending the Effective Date of the Pilot Until the
Earlier of the Initial Date of Operations of the Regulation NMS Plan To
Address Extraordinary Market Volatility or February 4, 2014
February 6, 2013.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on January 28, 2013, the Chicago Stock Exchange, Inc. (``CHX'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CHX proposes to amend CHX Article 20, Rule 2, which provides, among
other things, for trading pauses in individual securities due to
extraordinary market volatility, to extend the effective date of the
pilot by which such rule operates from the current schedule expiration
date of February 4, 2013, until the earlier of the initial date of
operations of the Regulation NMS Plan to Address Extraordinary Market
Volatility or February 4, 2014. The text of this proposed rule change
is available on the Exchange's Web site at (www.chx.com) and in the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the CHX included statements
concerning the purpose of and basis for the proposed rule changes and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The CHX has prepared summaries, set forth in sections A,
B and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend CHX Article 20, Rule 2, which
provides for, among other things, trading pauses in individual
securities due to extraordinary market volatility, to extend the
effective date of the pilot by which such rule operates from the
current schedule expiration date of February 4, 2013,\3\ until the
earlier of the initial date of operations of the Regulation NMS Plan to
Address Extraordinary Market Volatility or February 4, 2014.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 67573 (August 2,
2012), 77 FR 47479 (August 8, 2012) (SR-CHX-2012-12).
---------------------------------------------------------------------------
[[Page 9982]]
CHX Article 20, Rule 2 requires the Exchange to, among other
things, pause trading in an individual security listed on the Exchange
if the price moves by a specified percentage as compared to prices of
that security in the preceding five-minute period during a trading day,
which period is defined as a ``Trading Pause.'' The pilot was developed
and implemented as a market-wide initiative by the Exchange and other
national securities exchanges in consultation with the Commission staff
and is currently applicable to all NMS stocks and specified exchange-
traded products.\4\
---------------------------------------------------------------------------
\4\ The Exchange notes that the other national securities
exchanges and the Financial Industry Regulatory Authority have
adopted the pilot in substantially similar form. See Securities
Exchange Act Release No. 62252 (June 10, 2010), 75 FR 34186 (June
16, 2010) (File Nos. SR-BATS-2010-014; SR-EDGA-2010-01; SR-EDGX-
2010-01; SR-BX-2010-037; SR-ISE-2010-48; SR-NYSE-2010-39; SR-
NYSEAmex-2010-46; SR-NYSEArca-2010-41; SR-NASDAQ-2010-061; SRCHX-
2010-10; SR-NSX-2010-05; and SR-CBOE-2010-047) and Securities
Exchange Act Release No. 62251 (June 10, 2010), 75 FR 34183 (June
16, 2010) (SR-FINRA-2010-025). See also Securities Exchange Act
Release No. 62884 (September 10, 2010), 75 FR 56618 (September 16,
2010) (File Nos. SR-BATS-2010-018; SR-BX-2010-044; SR-CBOE-2010-065;
SR-CHX-2010-14; SR-EDGA-2010-05; SR-EDGX-2010-05; SR-ISE-2010-66;
SR-NASDAQ-2010-079; SR-NYSE-2010-49; SR-NYSEAmex-2010-63; SR-
NYSEArca-2010-61; and SR-NSX-2010-08 and Securities Exchange Act
Release No. 62883 (September 10, 2010), 75 FR 56608 (September 16,
2010) (SR-FINRA-2010-033). See also Securities Exchange Act Release
No. 63500 (December 9, 2010), 75 FR 78309 (December 15, 2010) (SR-
NYSE-2010-81). A proposal to, among other things, expand the pilot
to include all NMS stocks not already included therein was
implemented on August 8, 2011. See also Securities Exchange Act
Release No. 64735 (June 23, 2011), 76 FR 38243 (June 29, 2011) (File
Nos. SR-BATS-2011-016; SR-BYX-2011-011; SR-BX-2011-025; SR-CBOE-
2011-049; SR-CHX-2011-09; SR-EDGA-2011-15; SR-EDGX-2011-14; SR-
FINRA-2011-023; SR-ISE-2011-028; SR-NASDAQ-2011-067; SR-NYSE-2011-
21; SR-NYSEAmex-2011-32; SR-NYSEArca-2011-26; SR-NSX-2011-06; and
SR-Phlx-2011-64).
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The extension proposed herein would allow the pilot to continue to
operate without interruption until implementation of the Regulation NMS
Plan to Address Extraordinary Market Volatility.\5\ The Exchange
anticipates that the Regulation NMS Plan to Address Extraordinary
Market Volatility will not begin initial operations on February 4, 2013
as currently planned, but will begin operations on April 8, 2013.\6\ If
the Regulation NMS Plan to Address Extraordinary Market Volatility has
an initial date of operations of April 8, 2013 or any other date before
February 4, 2014, the proposed pilot for trading pauses would expire at
that time.
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\5\ See Securities Exchange Act Release No. 67091 (May 31,
2012), 77 FR 33498 (June 6, 2012) (File No. 4-631) (Order Approving,
on a Pilot Basis, the National Market System Plan To Address
Extraordinary Market Volatility by BATS Exchange, Inc., BATS Y-
Exchange, Inc., Chicago Board Options Exchange, Incorporated,
Chicago Stock Exchange, Inc., EDGA Exchange, Inc., EDGX Exchange,
Inc., Financial Industry Regulatory Authority, Inc., NASDAQ OMX BX,
Inc., NASDAQ OMX PHLX LLC, The Nasdaq Stock Market LLC, National
Stock Exchange, Inc., New York Stock Exchange LLC, NYSE MKT LLC, and
NYSE Arca, Inc).
\6\ See Letter from Janet McGinness, Senior Vice President,
Legal and Corporate Secretary, NYSE Euronext, to Elizabeth M.
Murphy, Secretary, Commission, dated January 17, 2013.
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\7\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\8\ in particular, in that it is designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. The Exchange
believes that the change proposed herein meets these requirements in
that it promotes uniformity across markets concerning decisions to
pause trading in a security when there are significant price movements,
which promotes just and equitable principles of trade and removes
impediments to, and perfect the mechanism of, a free and open market
and a national market system. Additionally, extension of the pilot
until the earlier of the initial date of operations of the Regulation
NMS Plan to Address Extraordinary Market Volatility or February 4, 2014
would allow the pilot to continue to operate without interruption while
the Exchange and the Commission further assess the effect of the pilot
on the marketplace or whether other initiatives should be adopted in
lieu of the current pilot, which contributes to the protection of
investors and the public interest.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed changes being
made to extend the operation of the trading pause pilot until the
earlier of the initial date of operations of the Regulation NMS Plan to
Address Extraordinary Market Volatility or February 4, 2014 would allow
the pilot to continue to operate without interruption until
implementation of the Regulation NMS Plan to Address Extraordinary
Market Volatility, which contributes to the protection of investors and
the public interest. Other competing equity exchanges are subject to
the same trading pause requirements specified in the Plan. Thus, the
proposed changes will not impose any burden on competition while
providing trading pause requirements specified in the Plan.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \9\ and Rule 19b-4(f)(6) thereunder.\10\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\12\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The Commission believes
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest because such waiver
would allow the
[[Page 9983]]
pilot program to continue uninterrupted. Accordingly, the Commission
hereby grants the Exchange's request and designates the proposal
operative upon filing.\13\
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\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6)(iii).
\13\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-CHX-2013-03 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-CHX-2013-03. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make publicly available. All
submissions should refer to File Number SR-CHX-2013-03 and should be
submitted on or before March 5, 2013.
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\14\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-03187 Filed 2-11-13; 8:45 am]
BILLING CODE 8011-01-P
